Correlation Between KB Financial and Greater Cannabis
Can any of the company-specific risk be diversified away by investing in both KB Financial and Greater Cannabis at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining KB Financial and Greater Cannabis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KB Financial Group and Greater Cannabis, you can compare the effects of market volatilities on KB Financial and Greater Cannabis and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in KB Financial with a short position of Greater Cannabis. Check out your portfolio center. Please also check ongoing floating volatility patterns of KB Financial and Greater Cannabis.
Diversification Opportunities for KB Financial and Greater Cannabis
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between KB Financial and Greater is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding KB Financial Group and Greater Cannabis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greater Cannabis and KB Financial is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on KB Financial Group are associated (or correlated) with Greater Cannabis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greater Cannabis has no effect on the direction of KB Financial i.e., KB Financial and Greater Cannabis go up and down completely randomly.
Pair Corralation between KB Financial and Greater Cannabis
Allowing for the 90-day total investment horizon KB Financial is expected to generate 3.69 times less return on investment than Greater Cannabis. But when comparing it to its historical volatility, KB Financial Group is 5.66 times less risky than Greater Cannabis. It trades about 0.09 of its potential returns per unit of risk. Greater Cannabis is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 0.07 in Greater Cannabis on September 4, 2024 and sell it today you would lose (0.02) from holding Greater Cannabis or give up 28.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.66% |
| Values | Daily Returns |
KB Financial Group vs. Greater Cannabis
Performance |
| Timeline |
| KB Financial Group |
| Greater Cannabis |
KB Financial and Greater Cannabis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KB Financial and Greater Cannabis
The main advantage of trading using opposite KB Financial and Greater Cannabis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KB Financial position performs unexpectedly, Greater Cannabis can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Greater Cannabis will offset losses from the drop in Greater Cannabis' long position.| KB Financial vs. Banco Santander Brasil | KB Financial vs. CrossFirst Bankshares | KB Financial vs. Banco Bradesco SA | KB Financial vs. CF Bankshares |
| Greater Cannabis vs. Global Hemp Group | Greater Cannabis vs. Cannabis Suisse Corp | Greater Cannabis vs. Maple Leaf Green | Greater Cannabis vs. Mc Endvrs |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |